The Lao government and Thailand's Export-Import Bank have reached an agreement to sell Lao bonds in Thailand to mobilize funds to finance the Nam Ngum 2 hydro-power project in Vientiane province.

The Thai Ex-Im bank will guarantee and issue the bonds, worth 3,000 million Bahts or about 78 million dollars, for which Laos is given 12 years to pay back. The Lao government has a 25% stake in the Nam Ngum 2 dam project. The rest is jointly owned by Thai private companies.

The Nam Ngum 2 dam will be built in early, and expected to be completed and producing 615 MW of electricity to sell to Thailand's EGAT by 2013 for $790 million.

Theun-Hinboun power station(Photo by Gerard Cheong of Theun-Hinboun project)

Meanwhile, investors of the Nam Theun-Hinboun dam project in Khammouane province say they will build a large reservoir on the Nam Yuang, with the aim to double their electricity production for sale to Thailand's EGAT, who has agreed in principle to purchase up to 3,500 MW of electricity from Laos within the next several years.

Listen to our Laos Today for more details.